Appropriate reporting lines for internal audit, including relationship with executive, audit and risk committees

摘要

The focus of internal audit traditionally was in process and control. This led to detachment from the strategic decision making of the executive. Did internal audit act with sufficient independence and objectivity prior to, during and since, the financial crisis? The most common formal reporting lines for internal audit are to the audit committee and for administrative 'pay and rations,' to the chief financial officer or chief executive. Does this reporting line pose a threat to the independence and objectivity of internal auditor?